Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
, see all updates

Basic terms of trust law as applied to CGT: creation of trusts

Trusts may be express trusts or implied trusts.

Express trusts are generally made by deed, by will or by the operation of law (for example, in an intestacy). In exceptional cases they can be made orally.

Implied trusts arise by operation of law in certain well established circumstances. These can be divided into

  • resulting trusts, which may arise where a person has bought property in the name of another person, see CG34400, or where property is put into a trust, the terms of which for some reason fail to dispose of all the beneficial interests in income and/or capital, and
  • constructive trusts, where the law considers it would be unfair for a person with control of property to use it in a way which disregards interests of another person in that property, which are not otherwise protected by law.